ROUTE2 TRANSLATES DATA AND INFORMATION INTO MORE USEFUL FORMS AND FORMATS.

Embodied in three core services, these new forms and formats can incentivise countries and corporations to establish more resilient and long standing foundations for wealth creation and distribution.

ROUTE2’S SERVICES ARE DISTINCTIVE FOR TWO REASONS

First, they manifest from real-time, ground-sourced, web-sourced, and direct disclosure-sourced data and information.

Secondly, the sourced data and information is structured and analysed according to Route2’s understanding of what drives wealth creation. Resulting services offer richer and more current views on what drives and undermines wealth creation.

PRODUCTS

Advisory

Balancing requisite short term financial returns with strategies for long term and resilient wealth creation…

The full Value 2 Society™ engagement classifies and quantifies all impacts resulting from business activities, positive and negative, across value chains, upstream and downstream. Additionally, economic valuation is utilised to enable impact comparison, aggregation and integration.

Credit Ratings

Providing alternative views on creditworthiness...

Standard creditworthiness methodologies augmented with Route2’s data, information and insight provide alternative and challenging views to convention. Route2 Credit Ratings, of sovereign and corporate issuers, follow the familiar alphanumeric rating form and are supported by summary and more detailed reports.

Issuer credit ratings will be available on a subscription basis and will reflect a constant real time ground sourced flow of data and information.

WEALTH CREATION

Route2’s understanding of the foundations for wealth creation assigns primacy to six types of capital-stock and eight types of capital flow.

The route to establishing more resilient and long standing foundations for wealth creation is the effective management of six types of capital stock. This is achieved through maintaining respective critical stock components, enhancing their functional out-flows, and developing a clear and actionable understanding of stock interdependencies and stock-flow interrelationships.

WEALTH CREATION

Route2’s understanding of the foundations for wealth creation assigns primacy to six types of capital-stock and eight types of capital flow.

The route to establishing more resilient and long standing foundations for wealth creation is the effective management of six types of capital stock. This is achieved through maintaining respective critical stock components, enhancing their functional out-flows, and developing a clear and actionable understanding of stock interdependencies and stock-flow interrelationships.

CAPITAL FLOWS:

01/08

Investment

Positive flow

Interventions to maintain or enhance capital stock functions / outputs and associated economic values. Investments, as recognised by Route2, do not include acquisitions. This flow captures the quantitative and qualitative changes to stocks under current ownership / control

Private Benefits

Positive flow

Capital stock functions / outputs, required to create economic goods & services, which are capable of market based exchanges. Exchange, between sellers and buyers, is mediated by the market prices of economic goods and services. Typically, the exchange will result in the seller receiving financial capital (cash) from the buyer.

External Benefits

Positive flow

Capital stock functions / outputs, required to create economic goods & services, which are not capable of market based exchanges. Absent characteristics make provision of these goods and services difficult to control. Such goods and services are gifts, from the producer to society. No financial capital is received by the seller in return for their provision.

External Costs

Negative flow

External costs represent the use of capital stock functions / outputs, required to create economic goods & services, for which no financial costs are incurred. External costs represent the consumption of external benefits.

Manufactured Capital
stock example

A new retail park development

01/06

Natural Capital
stock example

Additional tree planting on forest lands

01/06

Human Capital
stock example

Employee wellbeing programmes

01/06

Intellectual Capital
stock example

Employee training and development programmes

01/06

Social Capital
stock example

Community investment projects

01/06

Financial Capital
stock example

We assume the functions of financial capital (i.e. cash and equivalents) as a store of value, medium of exchange and unit of account and the impact of other flows are understood

01/06

Manufactured Capital
stock example

Building damage via workplace incident

01/06

Natural Capital
stock example

Mineral resources depletion through extraction

01/06

Human Capital
stock example

Workplace injuries

01/06

Social Capital
stock example

Late payment of suppliers

01/06

Intellectual Capital
stock example

Intellectual property leak

01/06

Financial Capital
stock example

We assume the functions of financial capital (i.e. cash and equivalents) as a store of value, medium of exchange and unit of account and the impact of other flows are understood

01/06

Manufactured Capital
stock example

Building damage via flooding ('natural')

01/06

Natural Capital
stock example

New policy restricting agricultural activity ('political')

01/06

Human Capital
stock example

Flu epidemic ('social')

01/06

Intellectual Capital
stock example

Redundancy of existing skill set through innovation ('market')

01/06

Social Capital
stock example

Economic downturn straining relationships ('market')

01/06

Financial Capital
stock example

We assume the functions of financial capital (i.e. cash and equivalents) as a store of value, medium of exchange and unit of account and the impact of other flows are understood

01/06

Manufactured Capital
stock example

Additional functionality for existing building

01/06

Natural Capital
stock example

Land management practice generating greater soil fertility

01/06

Human Capital
stock example

Greater employee engagement boosting productivity

01/06

Intellectual Capital
stock example

Learning by doing

01/06

Social Capital
stock example

Over-delivery to customer (reducing transaction costs)

01/06

Financial Capital
stock example

We assume the functions of financial capital (i.e. cash and equivalents) as a store of value, medium of exchange and unit of account and the impact of other flows are understood

01/06

Manufactured Capital
stock example

Upward market movement ('market') in property values

01/06

Natural Capital
stock example

New policy creating additional functionality of a natural resource ('political')

01/06

Human Capital
stock example

Improved work-life balance boosting productivity ('social')

01/06

Intellectual Capital
stock example

New policy creating additional functionality for skills ('political')

01/06

Social Capital
stock example

Economic upturn strengthening relationships ('market')

01/06

Financial Capital
stock example

We assume the functions of financial capital (i.e. cash and equivalents) as a store of value, medium of exchange and unit of account and the impact of other flows are understood

01/06

Manufactured Capital
stock example

Income received from the lease of a building

01/06

Natural Capital
stock example

Income received from the sell of agricultural produce

01/06

Human Capital
stock example

Wages received for employment undertaken

01/06

Intellectual Capital
stock example

Income received from the license of IP

01/06

stock example

Increasing Total Factor Productivity

01/06

Financial Capital
stock example

We assume the functions of financial capital (i.e. cash and equivalents) as a store of value, medium of exchange and unit of account and the impact of other flows are understood

01/06

Manufactured Capital
stock example

The lease of property space at discount

01/06

Natural Capital
stock example

A forest owners provision of recreational ecosystem services without charge

01/06

Human Capital
stock example

Employee volunteer schemes (undertaken during working hours)

01/06

Intellectual Capital
stock example

Production of public information i.e. knowledge sharing

01/06

stock example

An organisations reputation helping improve the financial performance of peers

01/06

Financial Capital
stock example

We assume the functions of financial capital (i.e. cash and equivalents) as a store of value, medium of exchange and unit of account and the impact of other flows are understood

01/06

Manufactured Capital
stock example

The use of public infrastructure without appropriate payment (e.g. tax over optimization)

01/06

Natural Capital
stock example

The use of waste assimilation ecosystem services, via pollutant release, without incurring costs

01/06

Human Capital
stock example

Underpaid employment i.e. internships

01/06

Intellectual Capital
stock example

Consumption of public information i.e. open source software

01/06

stock example

A peer's reputation helping improve the financial performance of the organisation

01/06

Financial Capital
stock example

We assume the functions of financial capital (i.e. cash and equivalents) as a store of value, medium of exchange and unit of account and the impact of other flows are understood

01/06

Investment

Positive flow

Interventions to maintain or enhance capital stock functions / outputs and associated economic values. Investments, as recognised by Route2, do not include acquisitions. This flow captures the quantitative and qualitative changes to stocks under current ownership / control

Private Benefits

Positive flow

Capital stock functions / outputs, required to create economic goods & services, which are capable of market based exchanges. Exchange, between sellers and buyers, is mediated by the market prices of economic goods and services. Typically, the exchange will result in the seller receiving financial capital (cash) from the buyer.

Financial Capital
stock example

01/08

External Benefits

Positive flow

Capital stock functions / outputs, required to create economic goods & services, which are not capable of market based exchanges. Absent characteristics make provision of these goods and services difficult to control. Such goods and services are gifts, from the producer to society. No financial capital is received by the seller in return for their provision.

Financial Capital
stock example

01/08

External Costs

Negative flow

External costs represent the use of capital stock functions / outputs, required to create economic goods & services, for which no financial costs are incurred. External costs represent the consumption of external benefits.

Financial Capital
stock example

01/08

CASE STUDIES

The Crown Estate

Total Contribution

Route2 has been integral to The Crown Estate’s Total Contribution initiative since inception. Total Contribution quantifies and communicates The Crown Estate’s contribution to the UK economy and wider society. The core methodologies are now evolving into decision-making tools, for example, an aid to investment management. Further, Route2 has supported The Crown Estate in quantifying the economic benefits of ecosystem services produced across their rural and coastal portfolio.

SGS

Green Book & Value 2 Society

Route2 has been central to the development and deployment of SGS’s unique Green Book and Value 2 Society framework. The Green Book is an ancillary management account, recording non-financial data (e.g. tonnes of greenhouse gas emissions, equal opportunity ratios etc.). It has been implemented across more than 50 countries of operation. Attainment of associated performance targets influences performance reviews. Driven by Green Book data, Value 2 Society helps SGS identify the future risks to and opportunities for their diverse services.

Yorkshire Water

Total Impact

Route2 has supported Yorkshire Water in their Total Impact initiative, providing advice on impact characterisation, quantification and economic valuation. Total Impact helps Yorkshire Water better understand the full consequences of routine operations across the value chain and thereby help reveal future risks and opportunities. Further, Route2 has supported Yorkshire Water quantify the economic benefits of ecosystem services produced across their rural portfolio.

PWC

Sustainable Development Goals

Route2 supports PwC in the development and deployment of their Sustainable Development Goal [SDG] ‘Business Navigator’. The navigator enables organisations to distil the SDG priorities across their countries of operation and the associated risks to growth if host countries do not achieve the goals.

ROUTE2 FUTURE

Route2’s credit rating service is currently in beta mode.

The Route2 App and Route2 Search Engine, which surface and extract the data and information underpinning this, are in a planned testing mode.

More details will be disclosed in the near future.

JOIN OUR TEAM

If you have an interest in social, political and environmental issues and their influence on finance please apply. Quantitative and analytical skills are favoured, but not essential. Successful applicants will be involved in an exciting business, have immediate responsibilities and receive a competitive salary.

If you believe you could add value to Route2, please email a CV and covering letter to careers@route2.com.

Your covering letter must be brief, explaining your motivations and professional interests.